According to Cointelegraph, Circle, the issuer of the USDC stablecoin, has revised its policy to clarify rules concerning prohibited transactions, specifically addressing the purchase of firearms and weapons. The updated terms grant Circle the authority to monitor and potentially block transactions related to firearms, ammunition, explosives, and other weapons. However, the terms now specify that these restrictions apply to weapons transactions that contravene applicable laws, indicating that legally obtained firearms can be purchased using USDC.
The recent update has sparked discussions among users and lawmakers, with some praising Circle's decision as a defense of Second Amendment rights. Wyoming Senator Cynthia Lummis expressed approval, stating that Circle's alignment with existing legal requirements supports constitutional rights and prevents financial systems from being used against law-abiding gun owners. The move comes amid ongoing discussions about stablecoin regulation in the United States under U.S. President Donald Trump, who signed the GENIUS Act in July to regulate payment stablecoins.
Circle's decision to update its terms may reflect feedback from lawmakers and Second Amendment advocates, or it could be an effort to strengthen ties with the Trump administration and Republican lawmakers. The signing ceremony for the GENIUS Act was attended by key figures from the stablecoin industry, including Circle CEO Jeremy Allaire and Tether CEO Paolo Ardoino. As the regulatory landscape for stablecoins continues to evolve, Circle's policy update highlights the intersection of financial technology and constitutional rights in the United States.
